Marketing

Mission Statement

A statement of the organization's purpose that acts as a "guide" for the process.

Strategic Planning

The process of matching an organization's goals/capabilities with marketing opportunities.

Steps In Strategic Planning

1. Define Mission 2. Set Objectives 3. Design Business Portfolio 4. Plan Functional Strategies

SBU (Strategic Business Unit)

A business.

BCG Growth-Share Matrix

A method that evaluates SBUs in terms of market growth rate and relative market share.

Star (BCG Matrix)

High-growth, high-share business requiring heavy investment.

Cash Cow (BCG Matrix)

Low-growth, high-share business that produces a lot of cash.

Question Mark (BCG Matrix)

Low-share, high-growth business that requires cash to hold share.

Dog (BCG Matrix)

Low-growth, low-share business that may generate enough cash to maintain themselves.

Market Penetration

Increasing sales to current customers without changing the original products.

Market Development

Identifying and developing new markets, geographic or demographic, for current products.

Product Development

Offering modified or new products to current markets.

Diversification

Start up or buy businesses outside of current products and markets.

SWOT Analysis

Evaluation of a company's internal Strengths and Weaknesses and external Opportunities and Threats.

The 4 Ps (Marketing Mix)

Product, Price, Place, and Promotion

Marketing Implementation

The process that turns marketing plans into marketing actions to accomplish objectives.

Marketing Control

Evaluating the results of marketing strategies and taking corrective action.

Segmentation

Dividing the total market into smaller segments.

Targeting

Selecting the segment or segments to enter.

Differentiation

Differentiating the market offering to create superior customer value.

Positioning

Positioning the market offering in the minds of target customers.

Geographic Segementation

Dividing a market into different geographic units.

Psychographic Segmentation

Dividing a market based on social class, lifestyle, and personality.

Demographic Segmentation

Dividing a market based on variables such as age, gender, family size, race, and generation.

Psychographic Segmentation

Dividing a market into different segments based on social class, lifestyle, or personality characteristics.

Behavioral Segmentation

Dividing a market into segments based on consumer knowledge, attitudes, uses of products, or responses to a product.

Intermarket Segmentation

Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.

Measurable (Segmentation Requirement)

The size, purchasing power, and profiles of the segments can be identified and measured.

Accessible (Segmentation Requirement)

The market segments can be effectively reached and served.

Substantial (Segmentation Requirement)

The market segments are large or profitable enough to serve.

Differentiable (Segmentation Requirement)

The segments are conceptually distinguishable and respond differently to different marketing mix elements.

Actionable (Segmentation Requirement)

Effective programs can be designed for attracting and serving the segments.

Undifferentiated (Mass) Marketing

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Differentiated (Segmented) Marketing

A strategy in which a firm targets several market segments and designs separate offers for each.

Concentrated (Niche) Marketing

A strategy in which a firm goes after a large share of one or a few smaller segments or niches.

Micromarketing

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments.

The Battle For The Mind

A concept stating that while products are created in a factory, brands are created in the mind.

Vertical Differentation

A type of differentiation where one product is clearly better than another based on objective quality.

Horizontal Differentiation

A type of differentiation where “better” is a matter of opinion rather than objective quality.

Positioning Statement

A statement that summarizes company or brand positioning using a specific “To… who… is… that…” format.

Core Customer Value

The most basic level of a product that addresses “What is the buyer really buying?”

Actual Product

The physical product’s parts, including its brand name, features, design, packaging, and quality level.

Augmented Product

Additional consumer services and benefits built around the core and acutal product, such as a warranty or after-sale service.

Convenience Product

A consumer product that consumers usually buy frequently, immediately, and with minimal comparison and buying effort.

Shopping Product

A consumer product that the customer, in the process of selecting and purchasing, usually compares on attributes such as suitability, quality, price, and style.

Specialty Product

A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

Unsought Product

A consumer product that the consumer either does not know about or knows about but does not normally consider buying.

Social Marketing

The use of traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well-being.

Product Line

A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, or are marketed through the same types of outlets.

Product Line Length

The number of items in a specific product line.

Product Line Stretching

Occurs when a company lengthens its product line beyond its current range, either downward, upward, or both.

Product Mix (Product Portfolio)

The set of all product lines and items that a particular seller offers for sale.

Product Mix Width

The number of different product lines a company carries.

Product Mix Length

The total number of items a company carries within its product lines.

Product Mix Depth

The number of versions offered of each product in a line.

Product Mix Consistency

How closely related the various product lines are in end use, production requirements, distribution channels, or some other way.

Brand

A marker of identification for a product and a promise to the customer that leads to feelings of trust.

Brand Equity

The positive effect that knowing the brand name has on customer response to the product.

Line Extension

Introduction of additional items (such as new flavors, forms, or colors) under the same brand name in an existing product category.

Brand Extension

Using a successful brand name to launch a product in a new product category.

Multibranding

A strategy where a company manages multiple different brands within the same product category.

New Brands

Used when existing brand names are unsuitable for extension or to avoid diluting the original brand’s value.

The Law Of Shape

The branding principle that the ideal shape for a logo is horizontal.

The Law Of The Word

The principle that a brand should strive to own a specific word in the mind of the consumer.

Intangibility

A service characteristic where services cannot be seen, tasted, felt, heard, or smelled before purchase.

Inseperability

A service characteristic where services cannot be separated from their providers.

Variability

A service characteristic where the quality of services depends on who provides them and when, where, and how they are provided.

Perishability

A service characteristic where service cannot be stored for later sale or use.

New Product Development (NPD)

The process of bringing a new product to market to rejuvenate the enterprise and increase stock value.

Idea Generation

The systematic search for new product ideas using internal sources (employees) and external sources (customers, competitors, suppliers).

Idea Screening

Filtering new product ideas to spot good ones and drop poor ones based on company criteria, costs, and manufacturing projections.

Product Concept

A detailed version of a new product idea stated in meaningful consumer terms.

Concept Testing

Testing new product concepts with groups of target consumers to find out if the concepts have strong consumer appeal.

Marketing Strategy Development

Designing an initial marketing strategy for a new product, including the target market, planned positioning, and sales goals.

Business Analysis

A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives.

Product Development

Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.

Test Marketing

The stage of new product development in which the product and its proposed marketing program are tested in realistic market settings.

Commercialization

Introducing a new product into the market; also known as the “Launch” phase.

Product Life Cycle (PLC)

The course of a product’s sales and profits over its lifetime.

Introduction Stage

The PLC stage when a new product is first launched, characterized by slow sales growth and high distribution/promotion expenses.

Growth Stage

The PLC stage in which a product’s sales start climbing quickly and the firm faces new competitors.

Maturity Stage

The PLC stage in which sales growth slows or levels off because many people already have the product.

Decline Stage

The PLC stage in which a product’s sales fade away as people no longer need to buy it.

Style

A basic and distinctive mode of expression that may last for generations, showing periods of renewed interest.

Fashion

A currently accepted or popular style in a given field that grows slowly, remains popular for a while, and then declines slowly.

Fad

A temporary period of unusually high sales driven by consumer enthusiasm and immediate product popularity, followed by a fast decline.

Market Modification

A maturity stage strategy where the company tries to increase consumption by finding new segments or increasing usage among current customers.

Product Modification

A maturity stage strategy involving changing product characteristics, such as quality or features, to attract new users.